- 27 Apr 2015
Satisfying the insatiable consumer: same day delivery
Last week it was announced that Amazon will be providing a nationwide same day delivery service from next year, fulfilled via a click and collect operation.
The retailer will offer a same day delivery option when the order is placed before 11:45am, which can be collected from Amazon’s thousands of pick-up points, from 4pm the same day. The price of the service is just £4.99, or free for Amazon Prime customers.
For both speed and convenience in today’s retail world, it looks like a fantastic level of service, and caters to the cost-conscious consumer, thanks to a relatively small delivery charge of <£5 (much below average for most retailers’ next day delivery charges).
The move towards faster delivery in retail has inevitably been driven by the consumer’s increasing desire for having their items quicker – desire now, buy now, want now – but at ever lower prices. It is also aided by the increase in delivery replenishment technology that allows stock levels to be more accurately monitored.
Amazon’s next day delivery offer is great for those who prefer “on-the-go” convenience, i.e. they don’t mind going to collect their purchases from a pick up point to give them flexibility, perhaps picking up on the way home from work for example. 21% of people we surveyed use click-and-collect for the convenience it provides, saying that the timing suits them better to collect their items in person.
However, in retail, convenience is not a one-size-fits-all term, and the lack of a home delivery option for Amazon’s same day service could prove problematic for those who would prefer home drop-off. In other words, there is still a degree of effort needed to go and pick up your items, rather than the stress free shopping fix of home delivery.
In time, perhaps the service may extend to home delivery, and the order curfew of 11:45am may be extended to allow the consumer even more time to place an order, whilst the 4pm delivery aim is brought forward to allow the consumer more time to collect. This would provide greater option, and greater satisfaction for the multifaceted consumer.
Perhaps drone delivery for this sort of logistical speed is close on the horizon too. In fact, recent research reveals that shoppers would be willing to opt for drone delivery, with 68% feeling they would benefit from faster delivery times. Amazon US is already trialling the technology, pictured below.
It goes without saying for Amazon, who is an online only retailer, but for omnichannel retailers, it is essential that efficient fulfilment of orders comes from one stock pool as pressure on the supply chain becomes stronger. With one central stock pool, not only is there a better inventory visibility, but satisfying the customer journey is a much easier operation. From the single stock pool vision, stock can be managed efficiently and effectively across multiple global retail channels.
For more information about how we could improve the efficiency of your supply chain solution, for better fulfilment or a clearer picture of stock, check out our omnichannel retail IT solution, Merret, developed with global multichannel retailing in mind.
And if you’d like to speak with one of our team, give Head Office a call on 0115 8533910, or email email@example.com.